What is the horizon or terminal value

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Reference no: EM13807426

The Sunnyside Corporation has expected dividends that are growing at high rate in Year 1=$2:00, Year 2= $3.50, Year 3=$5.50 and expects the dividends to grow at a constant 5% rate after Year 3. The investors require a 12% required rate of return. (Note: in calculating answer, use five decimal places and round to two decimal places the final answer)

What is the horizon or terminal value at the end of year three? ($82.50)

What is the price of the stock today?($67.21)

Reference no: EM13807426

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